Intel drops, dollar steadies as oil slips on talks

Intel shares fell more than 3% late on Monday after reports that Washington is considering taking a 10% stake in the chipmaker. The US dollar index edged up to 98.19 with sterling slipping to $1.350 and the euro steady at $1.166, while oil prices eased to $66.07 for Brent and $62.98 for WTI as investors weighed the prospect of peace talks involving the US, Ukraine and Russia. Spot gold held near $3,338 per ounce after UBS lifted its March 2026 price target to $3,600, citing persistent US risks and strong demand.

Equities

Britain’s FTSE 100 closed 0.2% higher on Monday, supported by gains in healthcare and defence shares. Heavy-weight healthcare stocks rose 1.2%, while the aerospace and defence sector also advanced 1.2%. Babcock International jumped 5.3% after RBC Capital Markets initiated coverage with an “outperform” rating. Dr Martens also performed strongly, climbing 8.5% after Peel Hunt upgraded the bootmaker to “buy” from “add”.

UK homebuilders fell close to 1% following a survey showing that asking prices for newly advertised homes slipped in the four weeks to mid-August, even as July sales reached their strongest level since 2020. Industrial metal miners slipped 2.2%, pressured by a firmer US dollar.

On Wall Street, the major US indices closed almost flat after a cautious session. The Dow Jones Industrial Average ended 0.08% lower at 44,911.82, the S&P 500 dipped 0.01% to 6,449.15, and the Nasdaq Composite edged up 0.03% to 21,629.77. The muted moves came ahead of the Federal Reserve’s Jackson Hole symposium later this week and a series of results from large US retailers. Walmart, Home Depot and Target are all due to publish earnings in the coming days, with investors watching closely for signs of how inflation and trade tensions are shaping consumer spending.

Among individual movers, Intel shares fell 3.66% on Monday after Bloomberg reported that the Trump administration is in talks to acquire a 10% stake in the chipmaker. The report weighed heavily on sentiment in the stock. In contrast, human resources software group Dayforce surged 26% after reports emerged that private equity firm Thoma Bravo is in advanced talks to buy the company.

Solar names also advanced strongly after the US Treasury unveiled subsidy rules for renewable projects that were less restrictive than feared. SunRun closed up 11.35% and First Solar climbed 9.69%.

Forex & Commodities

The US dollar edged higher on Tuesday as traders weighed the outcome of Monday’s White House summit between President Trump, President Zelenskiy and European leaders. The dollar index stood at 98.19, with the euro trading at $1.166 and sterling slipping back to $1.350. Against the yen, the dollar was steady at ¥147.8. The Hong Kong dollar firmed to 7.794 against the greenback after local interbank rates rose to a three-month high. The Australian dollar stood at $0.6489 following consumer sentiment data showing confidence at its strongest since early 2022, while the New Zealand dollar was flat at $0.5925.

In commodities, spot gold was little changed at $3,338 per ounce in early Asian trade. UBS lifted its price forecast for March 2026 to $3,600, citing persistent US macroeconomic risks, a decline in dollar use and resilient investment demand. Silver eased to $37.88, platinum slipped to $1,322 and palladium fell to $1,111.

Oil prices moved lower on Tuesday after modest gains in the previous session. Brent crude fell to $66.07 a barrel by mid-morning in Asia. West Texas Intermediate for September delivery, due to expire on Wednesday, traded at $62.98, while the more active October contract stood at $62.15. The declines came as investors considered the possibility of direct talks between Moscow, Kyiv and Washington that could lead to the easing of sanctions on Russian crude.